The Consumer Financial Protection Bureau said its proposal to roll back regulation for payday lenders will give consumers more access to credit — but as far as senior citizens are concerned, that may not be a good thing.
The Obama-era regulation, which was finalized in 2017 and was to be implemented in August of this year, required payday lenders to determine if the borrower could afford loan payments and still meet basic living expenses. The government agency said this week it plans to rescind its underwriting provisions and delay the rule’s compliance date to November 2020.
Kathy Kraninger, director of the Consumer Financial Protection Bureau, said in a statement the agency will evaluate comments, weigh the evidence and then make a decision. The bureau did not respond to a request for further comment.